National Assembly Extends 2025 Capital Budget Implementation to December 31, 2026
The National Assembly has extended implementation of the 2025 Appropriation Act’s capital component to December 31, 2026, giving federal ministries, departments and agencies (MDAs) three more months...
The National Assembly has extended implementation of the 2025 Appropriation Act’s capital component to December 31, 2026, giving federal ministries, departments and agencies (MDAs) three more months to complete ongoing capital projects.
The extension came after the Senate and House of Representatives separately considered and approved President Bola Tinubu’s request for more time to implement capital projects under the 2025 fiscal framework.
The Senate approved the extension after an executive session, following a motion by Senate Leader Opeyemi Bamidele and clause-by-clause review by the Committee of Supply.
Bamidele said the extension would allow full implementation of already-funded capital projects and help complete critical national projects nearing completion.
He said the measure would also help sustain economic activity, support local contractors, facilitate the efficient utilisation of released funds, improve overall budget performance and enhance public service delivery.
The Senate Leader stressed that the amendment was not intended to introduce new projects, adding that the extension should not be interpreted as a relaxation of fiscal accountability but as a measure in line with the Fiscal Responsibility Act.
The House of Representatives similarly approved the amendment through accelerated readings during plenary, with lawmakers stressing the need to prevent the abandonment of ongoing capital projects because of funding and implementation bottlenecks after considering a bill sponsored by House Leader Julius Ihonvbere.
The bill, titled “A Bill for an Act to Amend the Appropriation (Repeal and Enactment) Act 2025, to Extend the Implementation of the Capital Aspect of the Appropriation (Repeal and Enactment) Act, 2025 from 30th September 2026 to 31 December 2026,” passed first and second readings before the House proceeded to consider its provisions.
Honourable Ihonvbere said the capital component of the 2025 budget had not been fully implemented due to “economic difficulties.”
Following the presentation, the House dissolved into the Committee of Supply, where the bill was considered clause by clause. The committee subsequently reported back to the plenary, after which the bill was read for the third time and passed.
The latest extension represents the fourth adjustment to the implementation timeline of the 2025 capital budget. The budget was initially scheduled to expire on December 31, 2025, before the National Assembly extended the capital implementation period to March 31, 2026.
Recall that the extension was subsequently moved to June 30, 2026, and later to September 30, 2026. The latest amendment now extends the validity of the capital component until December 31, 2026.
The multiple extensions have sparked a mixed-bag of concerns, criticisms, and debates amongst a across-section of Nigerians, primarily revolving around economic stability and transparency, noting that rolling budget cycles heavily weaken fiscal discipline. Running multiple overlapping budgets concurrently erodes budget clarity and distorts annual performance tracking.
Under the new timeline, federal MDAs now have until the end of the 2026 calendar year to implement eligible capital allocations under the 2025 budget framework.
The extension is expected to give government agencies more time to utilise funds already released for ongoing projects, particularly critical infrastructure projects at various stages of completion.
However, the extension does not guarantee completion of the projects. The effectiveness of the measure will ultimately depend on the ability of MDAs to commit and disburse the available funds and deliver the projects within the new deadline.
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